PM Shehbaz extends nationwide austerity measures until June 13

ISLAMABAD (Web Desk) – Prime Minister Shehbaz Sharif on Monday extended the nationwide austerity measures until June 13 as the government continues efforts to manage the economic impact of the ongoing Middle East conflict and rising global oil prices.

The crisis emerged after the US-Israel attacks on Iran on February 28, which triggered concerns over international fuel supplies and energy costs. In response, Pakistan introduced strict austerity and fuel-saving measures on March 9.

According to a notification issued by the Cabinet Division, the prime minister approved the extension following recommendations from the committee overseeing fuel conservation and austerity policies.

Under the extended measures, fuel allowances for official vehicles will remain reduced by 50%, except for essential operational transport including ambulances and public buses. The government will also continue keeping 60% of official vehicles off the roads.

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The ban on foreign visits by ministers and government officials has also been maintained, except for trips considered vital to national interests.

The notification stated that all previously announced austerity and fuel conservation policies would remain in force for their specified durations, while measures without an end date would continue until further notice.

Earlier measures included reducing the working week for government offices to four days from Monday to Thursday, although banks, hospitals, industrial units, agricultural services and emergency sectors were exempted.

The government had also announced salary cuts for parliamentarians and employees of state-owned enterprises, along with a 20% reduction in departmental expenditures. Restrictions on purchasing official vehicles, furniture and air conditioners also remain in place.

Prime Minister Shehbaz Sharif had additionally directed the Intelligence Bureau to conduct an independent audit of the implementation of austerity measures.

Last month, the government also extended fuel subsidies for motorcyclists and transport sectors by another month to reduce the burden caused by soaring international oil prices.